For many individuals and families, owning a home is a lifelong dream. However, with rising real estate prices, some may find themselves seeking financing beyond the conforming loan limit. This is when you may need to apply for a jumbo loan.
What is a jumbo loan?
What exactly is a jumbo loan in Iowa? A jumbo loan is a specialized type of mortgage that comes into play when you’re seeking financing for a home that surpasses the conforming loan limits (CLL) established by the Federal Housing Finance Agency (FHFA). Typically, this type of loan is necessary for upscale, luxurious properties or those situated in pricey housing markets.
If the loan amount needed is more than the CLL, you’ll need a jumbo loan. Iowa jumbo loans allow you to borrow more money to buy a more expensive home, but they also come with higher interest rates and stricter requirements than conventional loans.
What is the jumbo loan limit in Iowa?
In Iowa, the conforming loan limit is $726,200 across all counties. For example, if you’re buying a home in Des Moines County, where the median sale price is $132,000, a loan limit exceeding $726,200 would be considered a jumbo loan.
As a reminder, the amount being borrowed is what determines whether or not you’ll need a jumbo loan, not the home price. So, if you were to put $50,000 down on a $750,000 home in Burlington, the mortgage would be $700,000, which is under the conforming loan limit for this area. In this case, your loan wouldn’t be considered a jumbo loan.
For more information on the conforming loan limit in your county, use the FHFA map.
What are the requirements for a jumbo loan in Iowa?
Borrowers must meet stricter requirements to qualify for a jumbo loan than they would for a conforming loan. The specific requirements may vary from lender to lender, but below are the typical requirements for borrowers seeking a jumbo loan.
Higher credit score: When it comes to jumbo loans, lenders generally look for a credit score of 720 or above to qualify a borrower. While some lenders may accept a score as low as 660, this is typically the lowest threshold for qualification.
Larger down payment: Jumbo mortgages typically require larger down payments than traditional mortgages. Generally, lenders require a down payment of at least 20% of the home’s purchase price to qualify for a jumbo loan. However, some lenders may require a higher percentage, depending on the borrower’s creditworthiness and overall financial situation. Keep in mind that larger down payments can help to reduce monthly mortgage payments, as well as overall interest costs over the life of the loan.
More assets: Jumbo loan lenders generally require borrowers to demonstrate a strong financial profile, including substantial liquid assets or savings. To qualify for a jumbo loan, borrowers must have enough reserves to cover at least one year of mortgage payments. This requirement ensures that borrowers have the financial flexibility to meet their loan obligations in the event of a financial hardship.
Lower debt-to-income ratio (DTI): When applying for a jumbo mortgage, Iowa lenders typically look for a borrower with a debt-to-income ratio (DTI) below 43%. Ideally, a DTI closer to 36% or lower is preferred. The DTI is calculated by dividing the sum of all monthly debt payments by gross monthly income. A lower DTI signifies a borrower’s ability to manage their current debt load while taking on additional mortgage payments. It also indicates greater financial stability and the ability to make on-time payments towards their non-conforming loan.
Additional home appraisals: When you buy a home in Iowa, mortgage lenders will require a home appraisal to confirm that the property’s value is equal to or higher than the loan amount. In some cases, a lender may require an additional appraisal for a jumbo loan. In areas with very few comparable property sales, the cost of the appraisal may be higher than in places with more frequent sales.
A Roth IRA might not be the flashiest way to spend your summer job money, but saving even a small portion of your paycheck could net you huge returns in the future.
The teen employment rate is expected to be 33.6% for summer 2023, based on Rice University’s recent jobs report
. Even more promising — the median wage for workers in the 16-24 age group was up 11.9% year over year in May, according to the Federal Reserve Bank of Atlanta.
As you make plans for that summer job money, here’s why you might consider adding a Roth IRA to the list.
Why open a Roth IRA?
Having a full-time job isn’t required in order to save for retirement. As long as you’re earning money, you can open a Roth IRA at any age.
And, particularly as a first-gen investor, it’s a great chance to start making your money work for you.
“The younger you are, the more time you have to save,” says Luis Rosa, a certified financial planner and founder of Build a Better Financial Future, a financial planning and investment advisory firm. “If you have the opportunity to start saving now, especially in a Roth IRA, and take advantage of not having to pay taxes on it at a future date, then it’s just a great combination.”
That benefit of a Roth IRA can also be its drawback: Because money is contributed after-tax, you don’t get any tax deductions now by saving for retirement. Instead, you get to take the money — and any gains — out tax-free after age 59½ as long as you’ve held the account for five years.
But those tax-free withdrawals are why Yanely Espinal, author of “Mind Your Money” and educational director at the nonprofit Next Gen Personal Finance, is a huge fan of the Roth IRA.
“I call it the G.O.A.T. (greatest of all time) when it comes to investment accounts,” Espinal says, referring to the Roth IRA. “And specifically for first-gen investors, you’re the first generation in your family to get access to the opportunity to build wealth.”
But what about 529 Plans?
If you’re working to save for college tuition and expenses, you might be considering a 529 savings plan instead of a retirement account. When it comes to a 529 plan versus a Roth IRA, which one wins out?
It depends on your situation and needs, and whether you’re planning to apply for financial aid. Money in a 529 savings plan, owned by either you or a parent, is counted as assets when applying for financial aid, but money in a retirement account isn’t.
“When you are a low-income or first-generation student, taking a … hit on your financial aid eligibility is a big deal,” Espinal says. “That could be your textbooks for your first semester or a laptop you need all four years.”
And although a Roth IRA is intended for retirement, it’s possible to access your money before age 59½ without paying a 10% penalty.
College costs fall under the category of “qualified distributions,” but there are catches to be aware of. You’ll owe taxes on any investment earnings withdrawn, and the withdrawals will count as income, which could reduce your financial aid eligibility in following years.
What to look out for in a Roth IRA
If you decide to open a Roth IRA, there are some things to consider, say Rosa and Espinal.
“The No. 1 thing you need to understand,” says Espinal, “is how much is it going to cost me to open an investment account? If it’s not free to open, automatic no.”
From there, both recommend a few more factors to think about:
Is there a minimum balance required to keep the account open?
Do the investments you want to buy have minimums, and how high are they?
Are there fees to keep the account active?
What are the fees, if any, for buying and selling investments?
Espinal also advises paying specific attention to the expense ratio, a term for the fees paid to cover a fund’s expenses, such as management and marketing.
“The expense ratio is an annual cost expressed as a percentage,” she says.
“You want it to be as close to zero as possible. Compare the costs and fees on a per-year basis across different platforms or firms, and go with the one that is going to allow you to keep the most of your money.”
Rosa also cautions young investors about transaction fees.
“If there are fees for trading,” he says, “you might actually churn your account, or trade to the point where the fees are more than any investment return you earned.”
How to invest your Roth IRA
After picking where to open your Roth IRA, the next step is deciding how to invest your money. Rosa is a fan of automating the process where possible.
Set it and forget it
“If you wait until the money hits your bank account to then decide to invest it, there is a chance that something’s going to come up,” Rosa says. “So if you can automate it to, say, on the 15th and 30th of every month, just make it as if it were a bill. A lot of us are already used to paying for video games and other subscriptions, and do the same for yourself and just automate your investment.”
Consider index funds
When it comes to picking what to invest in, Espinal prefers exchange-traded funds, also known as ETFs, and index funds, over individual stocks.
“This gives you automatic diversification,” she says.
Index funds and ETFs are baskets of assets, such as stocks or bonds, that seek to match the performance of a stock market index, such as the Dow Jones Industrial Average.
Rosa says he also recommends funds.
“Find a low-cost index fund that you don’t have to manage yourself and you don’t have to decide what stock to buy and sell,” he says.
Look into fractional shares
If you are interested in individual stocks, Rosa suggests exploring whether a brokerage offers fractional shares.
“You might be able to buy big company stocks without having to buy a whole share of them,” he says.
Digging further into what a brokerage offers is a good way to decide which one will offer you the most return for your money, and what’s feasible based on your circumstances.
The bottom line
For any new investor, and particularly when you’re first-generation, investing can seem complicated, especially if you don’t have anyone around you for guidance. But you can start small with a Roth IRA.
“You’re going to talk to an adult about money,” says Espinal. “That’s something most teenagers don’t do. And you’re learning to invest, even if it’s just starting with the basics, like buying an index fund for $200 inside your Roth IRA. It’s great for exposure.”
And even though retirement can seem like ages away, being strategic with your money now can pay off in the future. For young adults still on the fence about saving for retirement, Rosa’s opinion is: “If they can take some of that summer job money and put it in there, it’s best because they don’t feel the impact of it anytime soon,” he says. “But ultimately, their older self is going to thank them for having put their money in the world and be happy for that tax-free income.”
The purchase of life insurance is an important piece of nearly anyone’s overall financial portfolio. Even though it’s important, doesn’t mean everyone has a plan.
Why is life insurance so important?
One reason is because this essential financial tool can help to protect the ones you love from having to spend other assets on things such as final expenses, paying off debt, and / or living expenses in the case of the unexpected. The proceeds from a life insurance policy can also help to keep those you care about from falling into drastic financial hardship and changing their lives at a time that is already emotionally difficult for them.
At the time you are buying a policy, there are several key factors to keep in mind. One, certainly, is to ensure that you obtain proper protection so that your survivors will have plenty of cash to go on. Another is to be mindful of purchasing coverage through one of the most financially stable life insurance companies.
This is because you will want to know that the underlying insurer is strong and stable financially and that it will be there in the future, if and when a claim needs to be made. With that in mind, it is important to do some research on the insurer that you are considering before moving forward.
One insurance carrier that is somewhat newer in the industry is Accordia Life and Annuity Company. This company, a subsidiary of Global Atlantic, provides security and income products to its customers.
Unlike some other companies, like Allstate or Progressive, Accordia isn’t a household name, but that doesn’t mean they are any less valuable.
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History of Accordia Life Insurance Company
Accordia Life and Annuity Company is located in Des Moines, Iowa.
It began with more than 200 agents who were already well-versed in the life insurance business.
In just the past decade, Global Atlantic has become known in the insurance and financial industry as a provider of insurance commodities, as it has grown to more than thirty billion dollars in assets. One reason for this company’s success is due to its long-term focus on its policyholders, as well as its emphasis on teamwork that is driven by its experienced leadership from the top.
Accordia Life Insurance Company Ratings and Better Business Bureau Grade
Thought to be a solid and steady company from an economic standpoint, Accordia is rated as an A- from A.M. Best. This is rated as “Excellent” and is 4th out of a possible total 16 overall ratings.
Accordia Life Insurance Company is not an accredited company by the Better Business Bureau, nor has it been given a grade by the BBB. There have, however, been forty objections filed given to the BBB about Accordia over the past three years, and all forty have been closed.
Of these 40 complaints that were filed, 18 centered on the company’s billing/collection issues, 17 centered on problems with the company’s product and/or services, four had to do with advertising and/or sales issues, and one focused on other issues. There are also three negative reviews posted by customers about Accordia Life Insurance Company on the Better Business Bureau’s website.
Life Insurance Products Offered By Accordia
The products that are offered by Accordia Life and Annuity Company are well designed, and they are focused on meeting the protection, wealth transfer, and small business needs of customers across the country.
The primary products that are provided by Accordia include term insurance, as well as universal life and indexed universal life insurance coverage. These offerings can help its policyholders to prepare for both short and longer needs.
Accordia Life offers various kinds of life insurance protection to its customers. Doing so allows for its policyholders to create the protection that works the best for them, as well as to revise support as their requirements evolve over time.
Coverage that is provided via Accordia includes:
Term Life Insurance
One of the primary products that is offered through Accordia is term life insurance coverage. This product gives pure death benefit protection only, without any cash value or savings component. Due to this, term can be pretty decently priced – and a good way for those who need a large quantity of protection such as a $1 million dollar life insurance policy to obtain it at a lower rate. This is especially the case for people who might be young and in great health at the time of application.
Term life insurance is often thought of as being temporary coverage because it is purchased for a certain length of time such as for ten, twenty, or thirty years. There is also a 1-year annual renewable term life option. Typically, the premium rate for this will remain level within the policy’s “term” and then the policyholder will either need to re-qualify for coverage or the policy will naturally expire.
In some cases, a term life insurance policy will provide the option to convert over into a permanent form of coverage such as a universal life insurance policy. This way, the insured will not need to worry about the policy expiring at any certain time in the future (unless they stop paying the policy’s premium).
Universal Life Insurance
Accordia Life also offers universal life insurance coverage. This is a form of permanent life insurance protection, so in addition to death benefit coverage, there is also a cash value component in these policies.
The cash in the policy is allowed to grow on a tax-deferred basis. This means that the policyholder will not need to pay taxes on the gain or growth of the funds in this account unless or until the time of withdrawal. This can allow these funds to build and increase exponentially over time.
Universal life insurance coverage is thought to be a more flexible form of permanent life insurance than whole life insurance. This is because the policyholder may choose (within certain parameters) how much of their premium dollars will go into the cash value, and how much will go towards the death benefit of the policy. They may also be able to change their premium due date, based on their needs.
Accordia Life Insurance Company offers some different additional riders to their universal life insurance policies. These include the following:
Accelerated Access Rider
Wellness for Life Rider
Return of Premium Rider
Terminal Illness Accelerated Death Benefit Rider
Accidental Death Benefit Rider
Children’s Insurance Rider
Primary Insured Rider
Overloan Protection Rider
Waiver of Premium Rider
Waiver of Monthly Deductions Rider
Indexed Universal Life (IUL) Insurance
Another form of permanent life insurance coverage that is offered by Accordia is indexed universal life. With this type of universal life, the growth in the cash value component is based on the production of an underlying market index such as the S&P 500.
While the policyholder has the chance to increase his or her funds significantly based upon market performance if the market should decline, the principal in the account is preserved.
There are numerous choices for indexed universal life insurance that can be chosen through Accordia Life Insurance Company. These incorporate the:
Lifetime Builder IUL
Survivorship Builder IUL
Accordia Life Provider IUL
Get Best Life Insurance rates from Accordia
When looking for top quotes, work with multiple insurers. This is true not only for life insurance but for auto insurance and health insurance as well. That way, you will be able to compare benefits and from there you can determine which will work the best for you.
When seeking life insurance protection – along with policy quotes – we can help. We work with many of the best life insurance companies in the market today, and we can assist you with obtaining all of the important details that you require.
We understand that finding the best life insurance plan for your needs can sometimes feel overwhelming. There are many things to contend with – and you want to ensure that you are getting the right coverage for your specific requirements. But now you have an ally on your side. So, contact us today – we are here to help.
The residential mortgage-backed securitization includes a portfolio of 606 non-QM loans with a scheduled principal balance of $284.5 million. The loans have a weighted average loan coupon of 4.5%, a weighted average original loan-to-value ratio of 71.3%, and a weighted average original FICO score of 734. Read more: Angel Oak Mortgage REIT posts full-year financial … [Read more…]
Deepak Parekh on Friday announced his decision to step down as HDFC chairperson. “It is my time to hang my boots with both anticipations and hopes for the future. While this will be my last communication to shareholders of HDFC, rest assured we now stride tall into a very exciting future of growth and prosperity”, Parekh said in his last message to shareholders on the eve of HDFC and HDFC Bank merger. The reverse merger of parent HDFC Ltd with HDFC Bank is expected to be effective from July 1.
Hindustan Times’ sister website Livemint accessed Parekh’s last statement to his shareholders as HDFC chairperson. Read here.
Deepak Parekh in the last message to the shareholders said home loans will now be complemented with HDFC Bank’s core strengths — its sales engine, execution capabilities at scale and deep insights on consumer behaviour(MINT)
Dear Shareholders,
When I wrote to you last year, we had just commenced our journey of working towards the merger of HDFC and HDFC Bank. Financial year 2023 marked a year of many happenings. We have been working relentlessly on the merger, whilst continuing to focus on ‘business as usual’ in a global macro-economic environment that has been exceptionally volatile.
The optimism on India continues with renewed vigour. The country has demonstrated resilience with its broad-based recovery. India’s position has been further strengthened with cyclical and structural tailwinds. The country’s GDP growth rate is likely to be more than double that of global growth. We are extremely confident that the runway for housing finance in India will remain immense for several years to come.
During the year, we have made substantial progress on the merger. Personally, if I were to summarise the year in one word, it would be ‘gratitude’.
When we announced the merger, we knew we had hard deadlines to meet and a maze of complex transactions to navigate through. Being one of the world’s largest merger announcements in recent times, each milestone has been closely followed by all stakeholders. We have been unwavering in our commitment of being transparent throughout this process and have engaged deeply with our stakeholders to keep them abreast of the progress of the merger.
Working on a merger of this scale has been challenging and rewarding. Encountering hurdles is par for the course in such transactions. Yet, what amazed us the most has been the immense goodwill and strong relationships that HDFC as a group has. Whenever and wherever we reached out for guidance, doors opened and help was at hand instantly. We have worked with possibly the country’s best legal teams, chartered accountants, valuers, bankers, advisors and other specialised professionals. The collective knowledge and experience of all these parties is unparalleled.
The approvals by the Competition Commission of India, the National Company Law Tribunal, the shareholders and the regulators were important merger milestones. In all our dealings pertaining to the merger, the HDFC group has been treated in a fair and just manner. We stand committed to adhering to the prerequisites as stipulated by the regulators, respecting the fact that these decisions are made keeping in mind the best interests of the Indian financial ecosystem.
As we approach the tail end of the merger process, the effectiveness of the preparatory work undertaken will be tested. For over ten months, the Integration Committee has been labouring on ensuring a seamless transition. This is a painstaking exercise given the many moving parts of this complex merger. Cross functional teams are hard at work to ensure that the execution plan and strategic objectives are upheld in the merged entity.
Working towards the common goal of executing the merger has helped both sides get to know each other better. It has been a phase of working jointly to tackle issues on hand, but more importantly, it has enabled HDFC Bank to have a deeper understanding of the underlying dynamics of the home loan business.
Over the course of the year, both HDFC and HDFC Bank have gone to great lengths to explain the rationale of the merger, which has been well received by our stakeholders. An oft-repeated question is what happens to the culture of HDFC? My answer to this is that mergers are inherently about change. The work culture will be an amalgamation of the best of both organisations.
Culture at the workplace is always a shared responsibility. It needs daily reinforcement through the demonstration effect with the tone set at the top. What remains steadfast is the underlying ethics and value systems of both entities.
The confidence I derive is the agreed tenet of this integration — preserving the fabric of the ‘HDFC way of working’. This has also been publicly articulated by the leadership at HDFC Bank.
No institution in India has the richness of 46 years of understanding the needs of a home loan customer. Home loans are always different from other financial products. It is the single largest investment a person makes in his or her lifetime. Home loans as a financial product evokes a strong emotional quotient.
No doubt, the housing finance industry is a competitive one today. Yet, HDFC will always have the distinction of being the institution that introduced retail housing finance to the country. Over the years, we have, in no small measure, helped chart the course for housing finance to be recognised as an integral part of development of the country.
‘HDFC home loans’ is an invaluable intangible. Since inception, HDFC has been committed to building a customer centric organisation. We pride ourselves on our deep expertise in understanding real estate markets at the micro level, the relationships we have nurtured with developers and our ability to provide value added services such as legal and technical appraisals in-house.
Our experience has taught us that every home loan customer has their own story and it is the empathy factor that is the key differentiator between housing finance providers. Dealing with home loan customers requires immense patience. It is about understanding the needs and feelings of a home loan customer, assuaging their anxiety during this complex transaction, customising solutions, explaining financial implications of a mortgage product and lending responsibly to ensure a customer is not over stretched.
Home loans will now be complemented with HDFC Bank’s core strengths — its sales engine, execution capabilities at scale and deep insights on consumer behaviour. For HDFC Bank, a home loan customer marks the beginning of a journey of having a customer in perpetuity. HDFC Bank is excited at the prospect of cross selling an array of asset and liability products to home loan customers. This will be done seamlessly on their digitalisation platforms — all through a one click experience. HDFC Bank’s vast distribution network will be better harnessed for both home loans and the group companies. As a natural progression, the synergies between HDFC Bank and the group companies will deepen with HDFC Bank taking on the mantle of ownership.
What the future holds, only time will tell. The biggest risk organisations face today is staying with the status quo, believing what worked well yesterday will continue in the future. Change takes courage as it displaces one from the cocoon of comfort and familiarity. Yet, with change comes the power of adaptability, growth and new aspirations. The orchestration of this merger is to ensure that the future is not constrained for any of our stakeholders.
As HDFC hands the baton, my wish is that our core founding values of kindness, fairness, efficiency and effectiveness gets woven deeper into the fabric of the HDFC group.
To all our employees transitioning to HDFC Bank, know that you will always carry the indelible mark of ‘HDFC’ with you. This is your era of new possibilities. Embrace change, continue to work as close-knit teams, be kind and have each other’s back. The future is yours to grasp.
Our senior management and leadership team over the years have been the torchbearers and crusaders, ensuring that our core values percolate down to every level within the organisation. More importantly, to all our employees, past and present, I personally salute each and all of you who built the foundation, the walls and then the floors brick by brick with solid mortar. Some have been true HDFC lifers, others have dispersed, but none will be forgotten. They are the fulcrum upon which this institution has stood on.
Governance has been the cornerstone of HDFC and for that, I am grateful to all our directors who have supported and guided us through the decades.
To all our shareholders, thank you for your trust and belief in us. HDFC’s new home is about strategising and building for the long-term.
I deeply acknowledge the pivotal role and contribution of the Chairman of HDFC Bank, Mr. Atanu Chakraborty along with the other board members during this merger process.
With the proven execution capabilities of HDFC Bank, we are confident that Sashi, together with the leadership team will forge an era of new opportunities for the combined entity.
It is my time to hang my boots with both anticipation and hope for the future. While this will be my last communication to shareholders of HDFC, rest assured we now stride tall into a very exciting future of growth and prosperity.
The HDFC experience is invaluable. Our history cannot be erased and our legacy will be taken forward.
Deepak Parekh
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A reverse mortgage may help older Americans who find they need more money in retirement. It’s common for inflation and rising medical costs to be issues. A reverse mortgage allows them to convert some of their home’s equity into cash, which can benefit their financial situation.
Protections established over the past few years by the U.S. Department of Housing and Urban Development (HUD) focus on lowering the risk previously associated with reverse mortgages. What’s more, the federal and state governments have taken aim at deceptive marketing practices that can minimize the complex aspects of reverse mortgage agreements.
That said, it’s wise to proceed with caution. There are still considerable cons to reverse mortgages, and borrowers may be unaware of the finer points. One important fact: It is possible to lose one’s home if you don’t comply with all the loan terms. Take a closer look at this topic here.
Why Do People Choose a Reverse Mortgage?
A reverse mortgage allows qualifying homeowners age 62 and older to convert part of the equity they’ve built up in their primary residence into money they can use to pay off their existing mortgage or for any other expenses that come up in retirement (from health-care costs to home repairs).
The big selling point for reverse mortgages is that the loan usually doesn’t have to be paid back until the last borrower, co-borrower, or eligible non-borrowing spouse dies, moves away, or sells the home. And when it is time to repay the loan, neither the borrower nor any of the borrower’s heirs will be expected to pay back more than the home is worth.
Main Types of Reverse Mortgages
There are three basic types of reverse mortgages. The most common is a home equity conversion mortgage (HECM), which is the only reverse mortgage insured by the U.S. government and is available only through an FHA-approved lender. An HECM can be used for anything, but there are limits on how much a homeowner can borrow.
There are also proprietary reverse mortgages, which are private loans that may have fewer restrictions than HECMs — including how much a homeowner can borrow.
And there are single-purpose reverse mortgages, which are typically offered by nonprofit organizations or state or local government agencies that may limit how the funds can be used. Most of the time, when someone refers to a reverse mortgage, though, they’re talking about an HECM.
Reverse Mortgage Terms to Know
There are safeguards in the reverse mortgage process that protect borrowers, but there are also loan terms borrowers are required to uphold or risk defaulting and potentially triggering a mortgage foreclosure. They include:
Staying Current With Ongoing Costs
Borrowers must stay up to date on property taxes, homeowners insurance, homeowners association fees, and other costs, or they could risk defaulting on the loan. An assessment of a borrower’s ability to pay for those ongoing expenses is part of the reverse mortgage application process, and if it looks as though money might be tight, a lender may require a borrower to set up a reserve fund, called a “set-aside,” for those costs. (In this way, it’s akin to an emergency fund, which is there to cover expenses if needed.)
Maintaining Full-Time Residency
Borrowers (and eligible non-borrowers) must use the home as their primary residence — the home they occupy for most of the year. If they move out of the house or leave the home for more than six months, or receive care at a nursing home or assisted living facility for more than 12 consecutive months, it could result in the lender calling the loan due and payable.
The lender also may choose to accelerate the loan if the borrower sells the home or transfers the title to someone else, or if the borrower dies and the property isn’t the principal residence of a surviving borrower.
Keeping the Home in Good Repair
Because the home is collateral and may have to be sold to repay the loan, lenders may require borrowers to do basic maintenance that will help the property keep its value (e.g., repairing a leaky roof or fixing a problem with the electrical system). If an inspector feels the home is not being properly maintained, the lender could take action.
What Happens If a Reverse Mortgage Borrower Defaults?
If the homeowners default, the first thing that could happen is that future loan payments may be stopped. And if the problem isn’t corrected within the lender’s stated timeline, the loan may become due and payable, which means the money the lender has distributed to the borrower, plus any interest and fees that have accrued, must be repaid. In that case, the borrower typically has four options:
• They can pay the balance in full and keep their home.
• They can sell the home for the lesser of the balance or 95% of the appraised value and use the proceeds to pay off the loan.
• They can sign the property back to the lender.
• They can allow the lender to begin foreclosure.
No matter what the homeowners decide to do, the process could take months to complete. HECM lenders may offer borrowers additional time to fix the problem that put them into default, or the borrowers may qualify for extensions or a repayment plan.
But in the meantime, there could be other implications — if the homeowners are no longer getting money they need to pay their bills or if the lender reports the default to credit monitoring agencies — that could affect the homeowners’ credit scores.
A Few Alternatives to Consider
The advertisements some lenders use to sell their reverse mortgages can be convincing, and some seniors may see these loans as a convenient way to get some extra cash or as a much-needed lifeline.
But, as with any financial decision, there are advantages and disadvantages — and alternatives — to be considered. There are other ways homeowners may be able to get help that could be less complicated and less limiting than a reverse mortgage.
Here are a few options:
• Borrowers may wish to tap into their home’s equity with a traditional home equity loan or home equity line of credit. They’ll have to make monthly payments, and their income and credit history will be considered when they apply, but the terms may be more flexible and the overall cost may be lower than a reverse mortgage. Because the home is used as collateral, there’s still a risk of foreclosure.
• Low interest-rate personal loans might be another option for homeowners who qualify for a competitive interest rate based on their income and credit. Borrowers who don’t have much equity in their home may choose to look into this type of loan, which is unsecured and is paid out in a lump sum. While foreclosure is not a worry with a personal loan, there still may be consequences to the borrower’s credit rating if they don’t uphold the loan terms.
• Borrowers who are struggling to keep up with their bills in retirement may find that refinancing a mortgage with a new, lower-cost mortgage might be an option to help them lower their monthly payments and stay on track with their budget.
Or, if they need extra cash right away and can get a low enough interest rate, they may want to look into a “cash-out refinance,” which would involve taking out a new loan for a larger amount based on the equity they’ve built up during the years they’ve lived in the home.
Unfortunately, no matter which type of loan homeowners might choose, there could be risks.
The government requires a counseling session for reverse mortgage borrowers for a reason: They’re complex, and it can be helpful to have someone cover all the rules and costs involved.
Homeowners also may want to pay a financial advisor and tap their expertise about what type of loan, if any, fits with their needs, goals, and where they are in their retirement.
Though reverse mortgages are available to homeowners starting at age 62, borrowers who expect to have a long retirement may choose to wait until they’re older to tap into their home equity, so they don’t risk running out of money in their later years.
How SoFi Can Help
For many retirees, the equity they have in their home is their biggest asset. Armed with knowledge about the pros and cons of each type of loan and a long-term plan, borrowers can better protect that asset and their financial security.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.
SoFi Mortgages: Simple, smart, and so affordable.
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*SoFi requires PMI for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Minimum down payment varies by loan type.
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Investors who chafe at having to take required minimum distributions (RMDs) each year have a new tool to help them reduce the tax bite of these withdrawals – and provide retirement income for life.
A financial advisor can help you manage your RMDs and tax liability in retirement.
Among the many provisions in the new SECURE 2.0 Act is an option that allows IRA holders to combine qualified charitable distributions (QCDs) with a little-known vehicle called a charitable gift annuity. The result? Your charitable donations can help fund your lifestyle in retirement. Here’s how it works.
How to Turn a QCD into Lifetime Income
Anyone turning 73 this year is required to take a taxable required minimum distribution (RMD) from their IRA (the rules and ages vary according to birth dates). Someone turning 73 with an IRA worth $500,000 at the end of 2022 would need to withdraw $18,868 by the end of the year. That money is taxed as ordinary income.
Contributions to qualified charities can be made directly from an IRA for up to $100,000 each year, with that money being tax-exempt and counting toward the annual RMD amount. As of Jan. 1, retirees ages 70 1/2 or older can donate up to $50,000 of that $100,000 in one single tax year only to a charitable gift annuity.
In exchange for the donation, the charity makes a fixed annual annuity payment to the donor for the rest of their life or for the lifetime of the donor and donor’s spouse. The payment must be 5% of the donation or more. Most charities set the annuity payouts using the American Council on Gift Annuities suggested rates, according to The Wall Street Journal.
A recent article uses the example of a 70-something retiree who donated $25,000 from her IRA to her alma mater, which immediately reduced the taxable income from her required minimum distribution (RMD) by that amount. By directing the money to her college’s charitable gift annuity program, she has a fixed 7% annuity that will pay her $1,750 a year for the rest of her life. If she lives another 15 years, she’ll receive more from the annuity than the amount of her original gift.
Taxes and Other Considerations
While this strategy can help lower your tax bill in a given year, keep in mind that the annuity payments are considered ordinary income, so you’ll owe taxes on the money. Additionally, any money left over after the death of the donors goes to the charity.
While the $50,000 contribution must be made in a single year, it can be broken up into smaller amounts and distributed to different charities that offer charitable gift annuities.
However, both the $100,000 charitable donation limit and the $50,000 charitable gift annuity limit adjust for inflation after 2023. The annuity is backed by the assets of the charity.
Gift annuities allow donors to make contributions to charities that they otherwise might not be able to afford if they weren’t going to receive the annuity payments in return, since it provides some income for the rest of the donor’s life.
Bottom Line
Recent changes to the laws surrounding required minimum distributions (RMDs) from IRAs and other tax-deferred accounts have given retirees a bit more flexibility about how to handle their withdrawals and the resulting taxes. Using RMD money to make a charitable donation reduces the amount of taxable income from the distribution. Making a donation from an IRA to a charity offering a gift annuity provides some lifetime income for donors who might otherwise not be able to afford to make a donation.
Retirement Planning Tips
Tax planning is an essential part of determining how to save and invest for retirement, and becomes even more important when you start taking withdrawals. A financial advisor can help you answer your questions about RMDs and taxes. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Social Security is a key component of most retirees’ income plans. Knowing how much you can expect to receive is vital to creating a financial plan in retirement that meets your needs. SmartAsset’s Social Security calculator can estimate how much your benefits will be and help you determine when is the best time to claim them.
North Carolina is experiencing a boom these days, with record employment growth and an increasing population. If you live in the state, you already know there’s plenty to offer, including beautiful tourist attractions, breathtaking scenery, and a rich history that makes it unique.
But North Carolina also has plenty to offer when it comes to banks and credit unions. Whether you’re looking for an interest-bearing checking account or retirement accounts that offer the biggest bang for your buck, the best bank is the one that suits your needs.
15 Best Banks in North Carolina
If you’re on the hunt for a new bank or credit union, you’re in luck. North Carolina has a little of everything when it comes to bank accounts, from that small local bank with a focus on community service to large banks with branches in the state. This list of the best banks in North Carolina covers a variety of areas to ensure you find the best place to park your cash.
1. U.S. Bank
U.S. Bank offers customers the unique combination of local access with the extensive services of a nationwide bank. By opening a Bank Smartly® Checking account with U.S. Bank, clients can potentially earn up to $300. The qualification process involves two steps within the first 90 days of opening the account online:
Ensure at least two direct deposits totaling $6,000 or more
Register for online banking or download the U.S. Bank Mobile App
This promotional offer is subject to specific terms and restrictions and will remain valid until July 11, 2023. As a member of the FDIC, U.S. Bank ensures customer deposits are protected up to the FDIC’s established limits.
Fees:
$0 – $6.95
No-fee overdraft protection
Balance requirements:
$1,500 minimum balance or $1,000 direct deposit to qualify for free checking
$25 opening deposit
ATMs:
No ATM transaction fees at U.S. Bank ATMs
No surcharge fees at MoneyPass® Network ATMs
Interest rates:
Up to 4.50% APY on money market accounts
Up to 4.75% on fixed-rate CDs
Additional perks:
$300 bonus
Competitive rates on money market accounts & CDs
2. First Citizens Bank
Founded in North Carolina in 1898, First Citizens Bank has expanded over the years. You’ll find First Citizens Bank branches in 21 states, but the majority of its locations are in North Carolina and South Carolina.
If you frequently travel, though, check the service area. You’ll pay a $2.50 out-of-network ATM transaction fee if you can’t locate a First Citizens ATM while you’re away from home.
Fees:
No monthly fees
$10 overdraft fee
Balance requirements:
$50 minimum opening deposit
No minimum monthly balance
ATMs:
Fee-free at 500+ First Citizens Bank ATMs
$2.50 for out-of-network ATM transactions
Interest on balance:
0.03% APY on savings accounts
Up to 0.15% APY on CDs
Up to 0.15% APY on money market accounts
Additional perks:
Credit cards offer generous rewards
Robust mobile banking solutions
3. Chime
Chime is ideal for those who do most of their banking virtually. While you won’t find any brick-and-mortar locations, Chime does offer 24/7 phone support and access to cash through more than 60,000 ATMs nationwide. You can also deposit cash at more than 90,000 retail partners, including CVS and Walmart.
Fees:
No service fee
No overdraft fee
Balance requirements:
No deposit to open
No minimum balance required
ATMs:
Fee-free at 60,000+ ATMs nationwide
$2.50 for each out-of-network ATM transaction
Interest on balance:
2.00% APY on savings account balances
Additional perks:
Access to direct deposits up to 2 days early
SpotMe covers up to $200 in overdrafts
4. CIT Bank
North Carolina residents interested in online banks should take a look at CIT Bank, which is based in Raleigh, North Carolina. This national bank recently merged with First Citizens Bank, which means CIT Bank customers can enjoy brick-and-mortar banking at any CIT location.
You’ll get everything you need to manage your money in CIT’s mobile banking app, as well as refunds of up to $30 in out-of-network ATM fees each month.
Fees:
No monthly fees
No overdraft fees
Balance requirements:
$25 minimum deposit to open
No minimum daily balance required
ATMs:
No ATMs provided
Up to $30 in ATM fees reimbursed monthly
Interest on balance:
Up to 0.25% APY on checking
Up to 4.736% APY on savings accounts
Up to 5.00% APY on CDs
Up to 1.538% APY on money market accounts
Additional perks:
Competitive rates on business loans
Award-winning customer service
5. Coastal Federal Credit Union
Credit unions tend to offer perks you won’t find with banks, and Coastal Federal is no exception. You can qualify if you’re with one of the employers or associations approved for membership or if you live or work in one of the North Carolina cities CFCU services.
As with many credit unions, though, CFCU’s real value comes with its interest rates. Not only will you enjoy an interest checking account, but you can also find great rates on share certificates, which are the credit union version of CDs.
Fees:
No monthly service fees
$31 overdraft fee
Balance requirements:
No minimum opening deposit
No minimum daily balance required
ATMs:
Fee-free at CFCU ATMs
Fee-free at CO-OP ATMs nationwide
$2 out-of-network ATM fee (waived for first five per month)
Interest on balance:
Up to 3.00% APY on savings account balances
Up to 5.00% APY on share certificates
Up to 3.50% APY on money market accounts
Additional perks:
Competitive rates on loans
Financial planning assistance available
6. GO2bank
Another online-only bank is GO2bank, which stands out for its cash accessibility. Not only can you withdraw cash, fee-free, at any Allpoint ATM, but you can deposit cash at more than 90,000 retailers nationwide.
All you need to waive monthly maintenance fees is at least one direct deposit monthly, either from an employer or the government. Those looking to build credit should check out the secured credit card, which you can get with no credit check. Pay your bill on time each month and GO2bank will report your activity to the three credit bureaus, helping you boost your score.
Fees:
$5 monthly fee (waived with requirements)
$15 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 for each out-of-network ATM transaction
Interest on balance:
4.50% APY on savings accounts
Additional perks:
Deposit cash at 90,000+ retailers nationwide
Secured credit card helps you build credit with no credit check required
7. Ally Bank
Ally Bank is an online and mobile banking option that puts a priority on budgeting and wealth building. The fee-free checking account comes with no minimum requirements and gives you access to more than 53,000 ATMs nationwide. But one of the best features of Ally Bank is its annual percentage yield on savings and CDs. You’ll earn 4.00% APY on savings and up to 5.00% APY on CDs.
Fees:
No monthly fees
No overdraft fees
Balance requirements:
No minimum opening deposit
No minimum balance requirements
ATMs:
Fee-free at 53,000+ Allpoint ATMs nationwide
No out-of-network ATM fees
Up to $10 in ATM fee refunds monthly
Interest on balance:
Up to 0.25% APY on checking accounts
4.00% APY on savings accounts
Up to 5.00% APY on CDs
4.15% APY on money market accounts
Additional perks:
Spending buckets make it easy to save money
Robo Portfolios help automate investing
8. Chase
Like Bank of America, Chase Bank is one of the biggest banks in North Carolina, with more than 4,700 branches and 16,000 ATMs across the country. Currently, Chase is offering a $100 bonus for new checking account customers as long as you complete at least 10 qualifying transactions within the first 60 days.
Whether you go with Chase for your regular banking or not, though, take a look at Chase’s credit card offerings. Chase has multiple card options, with each offering perks like bonuses and cash back rewards.
Fees:
$12 monthly maintenance fee
$34 overdraft fee
Balance requirements:
No deposit to open
No minimum balance required
ATMs:
Fee-free at 16,000 Chase Bank ATMs nationwide
$3-$5 for each out-of-network ATM transaction
Interest on balance:
0.01% APY on savings account balances
Up to 3.75% APY on CDs
Additional perks:
$100 bonus for new checking accounts
Multiple credit card options with bonuses and generous rewards
9. First Horizon Bank
First Horizon Bank is a regional bank with branches in 11 states across the Southeast, including a heavy presence in North Carolina. One standout feature of First Horizon is its money market rates, which currently go as high as 5.38%. You’ll find ATMs throughout the Southeast, but you can also use your debit card at any Allpoint ATM nationwide without a fee.
Fees:
No monthly service fee
$37 overdraft fee
Balance requirements:
$50 minimum deposit to open
No minimum balance required
ATMs:
Fee-free at more than 600 First Horizon ATMs
Fee-free at Allpoint ATMs nationwide
$3 for each out-of-network ATM transaction
Interest on balance:
Up to 2.78% APY on savings accounts
0.10% APY on CDs
Up to 5.38% APY on money market account
Additional perks:
Business banking options available
Wealth management help available
10. Truist Bank
In 2019, BB&T and SunTrust Banks merged to become Truist Bank. Although Truist has a limited ATM footprint, the Truist One checking account makes it worth it. You’ll get a 10% loyalty bonus based on your monthly balance in addition to a 10% bonus if you choose a Truist credit card.
The interest rates also make Truist a suitable option, since you’ll earn 5.00% APY on 7-month CDs. To waive the $12 monthly service fee on your checking account, you’ll need at least $500 in direct deposit activity each month.
Other options include a combined daily balance of $500 across all your Truist accounts, a Truist credit card or qualifying loan, or a linked business checking account. Students 25 and younger also qualify for a fee-free checking account.
Fees:
$12 monthly service fee (waived with requirements)
No overdraft fees
Balance requirements:
$50 minimum deposit to open
No minimum balance required
ATMs:
Fee-free at Truist Bank ATMs
$1 for each out-of-network ATM transaction
Interest on balance:
0.01% APY on savings accounts
Up to 5.00% APY on CDs
Additional perks:
Generous cash rewards with Truist Bank credit card
Checking balances earn rewards
11. Mechanics & Farmers Banks
You may know it as M&F Bank, but it actually started under the name of Mechanics & Farmers Bank in 1907. Throughout the 1900s, it was known as one of the most influential Black-owned businesses in the state of North Carolina. Today, M&F has locations throughout North Carolina and access to 44,000 ATMs nationwide, thanks to partnerships with Bank of America, JPMorgan Chase, and Wells Fargo.
Fees:
No service fee
$35 overdraft fee
Balance requirements:
$50 deposit to open
No minimum balance required
ATMs:
Fee-free at M&F Bank ATMs
Fee-free at Bank of America, JPMorgan Chase, and Wells Fargo ATMs
$3 for each out-of-network ATM transaction
Interest on balance:
Rates not publicly disclosed
Additional perks:
Rewards on debit card transactions
Robust business banking options
12. First National Bank
First National Bank has branches throughout North Carolina, as well as in DC, Maryland, Ohio, Pennsylvania, South Carolina, Virginia, and West Virginia. The free checking account is Freestyle Checking, but it does come with overdraft fees, and the exact fee amount isn’t disclosed until you sign up for an account.
You’ll also only get fee-free transactions at First National Bank ATMs, and they’re limited to the First National Bank service area.
Fees:
No monthly fee
Balance requirements:
$50 minimum deposit to open
No minimum balance required
ATMs:
Fee-free at 1,500+ First National Bank ATMs
Interest on balance:
Up to 0.05% APY on savings accounts
Up to 5.00% APY on CDs
Up to 1.25% APY on money market account
Additional perks:
Cash and check deposit available at Smart Deposit ATMs
The site makes ordering banking products and scheduling branch appointments easy
13. PNC Bank
PNC Bank has branches in 29 states, including 107 branches in North Carolina. Currently, new customers are eligible for bonuses of up to $400. You’ll get a $50 bonus simply for opening a Virtual Wallet with a basic checking package, but that bonus bumps up to $200 if you add a Performance Spend checking account and $400 if you upgrade to a Performance Select account.
The PNC Bank basic account only requires $500 in monthly direct deposits or a combined $500 balance between accounts.
Fees:
$7 monthly fee (waived with requirements)
$36 overdraft fee
Balance requirements:
$25 minimum deposit to open
No minimum balance required
ATMs:
Fee-free at PNC Bank ATMs
Fee-free at 60,000+ partner ATMs nationwide
$3 for each out-of-network ATM transaction
Interest on balance:
Up to 0.03% APY on savings accounts
Up to 4.00% APY on CDs
Additional perks:
Up to $400 bonus for new virtual wallet customers
Financial planning tools built into the app
14. Fifth Third Bank
Fifth Third Bank focuses operations on the Midwest and Southeast U.S. regions, with 1,087 full-service locations in 11 states. You’ll find a variety of banking products, from savings and checking accounts to investment and retirement accounts. Fifth Third Bank offers competitive interest rates on CDs, with a 7-month CD currently offering 5.00% APY.
Fees:
No monthly maintenance fee
$37 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum balance required
ATMs:
Fee-free at 2,100+ Fifth Third Bank ATMs
Fee-free at 40,000+ partner ATMs nationwide
$3 for each out-of-network ATM transaction
Interest on balance:
0.01% APY on savings account balances
Up to 5.00% APY on CDs
Additional perks:
Early Pay gives you access to direct deposit two days early
Grace period to resolve overdrafts
15. Bank of America
If you prefer what national banks have to offer, you can’t go wrong with Bank of America, which is one of the biggest banks in the country. You’ll find ATMs and branches across the country, as well as a wide variety of services. Although Bank of America does have competitive interest rates on CDs, the basic checking account comes with a $12 monthly fee and a $100 deposit to open.
Fees:
$12 monthly fee
$10 overdraft fee
Balance requirements:
$100 deposit to open
No minimum balance required
ATMs:
Fee-free at 15,000+ Bank of America ATMs nationwide
$5 for each out-of-network ATM transaction
Interest on balance:
Up to 0.04% APY on savings account balances
Up to 4.75% APY on CDs
Additional perks:
Generous bonus on new credit cards
Wealth planning services available
Our Methodology: How We Chose the Best Banks in North Carolina
North Carolina has a large selection of banks, some paying more in interest than the national average. In putting together this list, we kept in mind that each person has different criteria when choosing savings and checking accounts. Your choice of bank will largely depend on your own banking habits. If you tend to do all your banking online, a user-friendly app might be a top priority, while those who prefer the in-person experience might put nearby branches first.
Our top goal was to bring a variety of banking options to this list. We’ve combined local, regional, online, and national banks to help you choose. We also looked at fees and interest rates to help you protect and grow your earnings.
Frequently Asked Questions
You have questions, and we have answers. Here are some of the most frequently asked questions about banks in North Carolina.
What is the safest bank for your money?
Lately, financial security has been a top priority for account holders in search of a new bank. The top thing to look at is a bank’s Federal Deposit Insurance Corporation coverage. This insurance protects each deposit holder for up to $250,000 if a financial institution goes belly up.
Once you’ve verified a bank is FDIC insured, pay attention to any news of mergers or buyouts involving your bank. Selling can be a sign of financial distress.
See also: Safest Banks in the U.S. for 2023
What is the best bank in North Carolina?
That’s a tough question because the definition of “best bank” can vary from one person to another. If you think the best checking accounts come with an annual percentage yield and a mobile app to manage it all, you’ll be looking at different criteria from someone who wants a local bank with personalized customer service.
If you’re going for customer satisfaction ratings, J.D. Power gives high marks to both Capital One and Chase, which both have a heavy presence in North Carolina. But if you’re looking for that local banking experience, you can’t go wrong with First Citizens Bank or M&F Bank.
What is the best credit union in North Carolina?
There are several credit unions in North Carolina, but the one that impressed us most was Coastal Federal. CFCU’s fee-free checking and annual percentage yield on savings and share certificates makes it stand out. But it’s also important to take a look at the interest rates on personal loans and compare them to banks in the area to make sure you’re getting the best deal.
One issue with credit unions is that they tend to come with strict membership requirements. You may find you’re limited to only those that will accept your employer or city of residence, and those credit unions might not have financial accounts that meet your needs. However, there are also some credit unions that anyone can join.
Which bank has the most branches in North Carolina?
If you do most of your banking in North Carolina, you might not care if your debit card works at ATMs across the country. In that case, you’ll need a bank with plenty of branches and ATMs in the areas where you work and live.
When it comes to sheer branch numbers, take a look at Truist Bank and Wells Fargo. Both have a heavy branch presence throughout the state. For smaller banks, First Citizens and First Horizon both have substantial branch coverage in North Carolina.
However, you’ll also need to check your neighborhood. If you’re interested in that in-person bank experience, you’ll be disappointed if you have to drive a half hour or more to get to the closest branch.
What banks are in Charlotte, NC?
North Carolina isn’t just a thriving state filled with business opportunities. The state is a financial center in itself. Not only does Charlotte have smaller banks like M&F Bank and First Citizens Bank, but both Bank of America and Truist Bank are headquartered in North Carolina, as well.
This heavy financial presence has made North Carolina great for finding banking services. The many banks in the state are eager to win your business and offer competitive rates to ensure it happens. That means it’s more likely that checking accounts come with low fees and savings accounts earn top-dollar interest rates. When combined with the many online bank options, the biggest issue will be narrowing the list to just one.
From high-yield savings accounts to fee-free checking accounts, North Carolina has it all. Shopping around will help you choose from the best banks so that you can find the perfect banking partner for you.
We made it to Friday once again. The good news for borrowers is that mortgage rates are improving right now. This makes right now a great time for anyone looking to purchase or refinance to lock in a rate. So give us a call or fill out our simple online form to get started. Read on for more details.
Where are mortgage rates going?
Rates fall after a disappointing jobs report
Well, we persevered through the week and arrived at Friday once more. The big news today in the market is the Employment Situation for March (a.k.a. the monthly jobs report).
This report is almost always once of the most influential reports every month, and this time around was no different. The headline reading in today’s report showed that 103,000 jobs were added to the U.S. economy in March.
That’s a big miss from the 175,000 that analysts had expected. It’s even below the low end range of 112,000. It’s not all bad, though, as average hourly earnings did hit the expected mark with a 0.3% monthly rise.
Most economists aren’t too troubled by the headline reading either, despite it being the lowest in six months. They see it as a one-off dip that isn’t reflective of the long-term trend.
Nevertheless, that isn’t stopping money from going out of stocks and into bonds, pushing down Treasury yields. The yield on the 10-year Treasury note is down about three basis points to 2.80% today.
Mortgage rates typically move in the same direction as the 10-year yield and are similarly a little lower as we head into the weekend. As we saw in the Freddie Mac Primary Mortgage Market Survey (PMMS) yesterday, rates improved for the second straight week this week.
Here are the numbers:
The average rate on a 30-year fixed rate mortgage fell four basis points to 4.40% (0.5 points)
The average rate on a 15-year fixed rate mortgage fell three basis points to 3.87% (0.4 points)
The average rate on a 5-year adjustable rate mortgage fell four basis points to 3.62% (0.4 points)
Here is what the Freddie Mac’s Economic and Housing Research Group had to say about rates this week:
“After dropping earlier this week on trade-related anxiety in financial markets, the benchmark 10-year Treasury stabilized on Wednesday, but at a level slightly lower than from the start of last week. Mortgage rates followed and fell for the second consecutive week; the U.S. weekly average 30-year fixed mortgage was 4.4 percent in our survey this week. Though rates on the 30-year fixed mortgage are up 0.3 percentage points from the same week a year ago, a robust labor marking is helping home purchase demand weather modestly higher rates. The Mortgage Bankers Association reported in their latest Weekly Mortgage Applications Survey that the Purchase Index was up 5 percent from a year ago indicating that this spring is on track for a modest expansion in purchase mortgage activity.”
Rate/Float Recommendation
Lock now before rates increase significantly
With mortgage rates moving lower to end the week right now is a great time to lock in a rate on a purchase or refinance.
Long-term, rates are still expected to rise so borrowers who act now are likely going to get the better deal.
It only takes a few minutes with our online mortgage builder or a quick phone call to one of our loan experts to get started.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
Monthly Jobs Report
See above for details.
Notable events this week:
Monday:
PMI Manufacturing Index
ISM Manufacturing Index
Construction Spending
Fedspeak
Tuesday:
Wednesday:
ADP Employment Report
Fedspeak
PMI Services Index
Factory Orders
FOMC Minutes
ISM Non-Mfg Index
EIA Petroleum Status Report
Thursday:
Jobless Claims
International Trade
Fedspeak
Friday:
Monthly Jobs Report
*Terms and conditions apply.
Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
It’s not all about the beach in Miami. Sometimes you need a hot outdoor spot right at home.
Miami is one of those cities that almost has too much to offer. From apartments with amazing views, compliments of amenity-filled rooftops, to luxury features like high-class fitness centers, it’s not always easy to narrow down your options in this abundance.
One must-have amenity in any Miami apartment is a killer outdoor space. You need some greenery and a perfect gathering spot, to enjoy the wonderful weather with friends. That’s why finding places with solid courtyards or gardens in Miami is essential, and these 10 apartments will totally fit the bill.
Source: Rent. / Alea
There are a couple of cool courtyard-like spaces up and down Alea, which uses its vertical space very well, The actual courtyard hosts the community’s dog run, but this colorful spot gives you a great view and a patch of greenery. The bright mural on the wall, ceiling and pillars of this outdoor space provides character that’s totally Miami, offering up a unique space for a moment of relaxation, shaded from the Florida sun.
Known as the historic center of the city, living in the Miami Central Business District puts you in the hub of so much activity. You’re close to work and fun within the six city blocks that make up this downtown neighborhood. Public transportation makes it easy to get around this dynamic area as well, whether you’re heading out to eat, checking out an art gallery or simply heading off to work.
Source: Rent. / Opera Tower
Planting up rather than out, the front of Opera Tower gives you a vertical garden of greenery to enjoy. Set higher than the palm trees lining the entrance, lush bushes seem to grow straight from the building itself. This funky garden not only adds a great pop of color to the pristine building but really makes the space stand out.
Sitting along the shores of Biscayne Bay, the Edgewater neighborhood isn’t far from the center of everything happening in Miami. It offers a perfect mix of parks, shops, restaurants and waterfront recreation. Margaret Pace Park, also nearby, gives you easy access to trails, tennis and superb picnic spots, while Biscayne Boulevard is where you’ll find posh shops and great places to eat. It’s all right outside your door waiting for you.
Source: Rent. / Gables Ponce
A sleek courtyard surrounded by tall palms and shapely landscaping highlights a great hangout space at Gables Ponce. Curved couches face into a small fountain with cabana-style seating off to the side. There are even outdoor cabanas, a must in this Central Gables neighborhood.
About seven miles from Miami’s center, you’ll hit the beautiful suburb of Coral Gables. Known for its tree-lined streets and historic landmarks, this area is also home to the University of Miami, so you’ll find a nice dose of college students. There’s also amazing shopping and dining along the city’s Miracle Mile and a beautiful dose of nature at the Fairchild Tropical Botanic Garden.
Source: Rent. / Brickell 1st Apartments
You’ll find the soothing rock garden at the very front of Brickell 1st Apartments. Every time you enter, this pool is here to greet you as the small fountains agitate the water so it trickles over the smooth stones. It’s like having a tiny zen garden to help you transition into being back at home, hopefully helping your daily stressors fall away before you reach your front door.
The true urban jungle of Miami, Brickell is the financial center of the city, so living here puts you in proximity to plenty of tall buildings. It’s also where you’ll find great rooftop bars, art galleries and fashionable shops. It’s the downtown you’d expect to find in Miami.
Source: Rent. / WYND 27 & 28
A good courtyard is a functional courtyard, and thanks to the ample seating at WYND 27 & 28, you get just that. Funky flooring defines the space, while a planter with a tall and lanky tree sits front and center. Long rows of cushioned benches surround the space, providing a woodsy feel to this great hangout spot.
Giving you a dense concentration of the arts, the Wynwood Arts District combines art galleries, museums and amazing pieces of street art to create a truly unique and eclectic neighborhood. Among all this unfettered creativity, you’ll find cool antique shops, fun bars and quirky places to eat, so the vibe stays true no matter what you’re doing.
Source: Rent. / Cordoba Luxury Rentals
The best way to take in the courtyard at Cordoba Luxury Rentals is through a wide angle. The mass of tall palm trees makes it hard to get a view of the whole space at once, although they create a great park-like atmosphere. A little hardscape and some clusters of bushes add to the easily navigable area thanks to paved pathways.
For those who love to travel, or find themselves on frequent work trips, Cordoba may be the perfect neighborhood for you. It’s only six miles from Miami International Airport. College students may also eye this area since it’s also near Florida International University. Aside from its ideal location, the area boasts fantastic parks, shopping and a few golf courses.
Source: Rent. / Villa Majorca
A sweet courtyard with a stately fountain provides a stellar first impression of Villa Majorca. Two tall palm trees frame the entrance with tropical plant life filling in the rest of the landscaping. Another Coral Gables gem, this tranquil space is a truly unique amenity.
This smaller community provides residents with luxury living in the heart of Coral Gables Apartments are very spacious, and community amenities include a fitness center and hot tub. You also get the perk of enjoying the surrounding simplistic and clean Mediterranean-style architecture.
Source: Rent. / Blue Lagoon 7
Every courtyard needs a decent seating area, and at Blue Lagoon 7 the combination of white furniture with green grass gives everything a pristine look. Snag a seat on the circular lawn and hang out with friends, or settle into the couch under the cabana. This is just one piece of the expansive courtyard that includes other pods of seats, along with nice landscaping.
Big on luxury and outdoor space, Blue Lagoon 7 provides an array of green and blue retreats to absorb that fresh Miami air. Sitting right on the waterfront, there’s no shortage of crystalline views. A great pool, outdoor gaming area and multiple gas grills add even more to the outdoor space here. You can take a dip, play a game of ping pong or lawn chess and grill up some goodness all in one swoop.
Source: Rent. / Platform 3750
The garden at Platform 3750 is very interesting. Rather than on the ground, it fills an entire wall above the parking garage. Flowers bloom vertically and plants hang down on this special spot that takes gardening to the next level, literally. A beautiful palm tree stands out from a bricked planter as well to draw the eye to one of the most interesting gardens in Miami.
Known as Miami’s oldest, continually inhabited neighborhood, Southwest Coconut Grove is another great spot to call home. Living here puts you close to dining, shopping, entertainment and pristine beaches. There’s a lot of charm and history here as well, which manifests in the funky shops and delicious restaurants.
Source: Rent. / Avalon Doral
An outdoor lounge sits within a tropical garden at Avalon Doral. Find tranquility in this space just off the pool thanks to the rounded chairs and four-top tables surrounded by leafy greenery and palm fronds. Funky lighting makes this space usable even after dark, and the overall tropical ambiance really puts you in the Florida state of mind.
Downtown Doral may be a few miles away from Miami’s city center, but it’s a happening spot all the same. Walk along the main street for shopping, food and fun things to do, or explore Downtown Doral Park. This park covers three acres right in the heart of this suburb and includes a playground, picnic tables and a great jogging path.
Grab an apartment with one of the best gardens in Miami
Finding that perfect Miami apartment is never easy, so make sure you know what’s really important before you really start your search. From the location to the pool to plenty of other amenities, don’t forget about that stellar outdoor space as well. You can get a great place to chill outside even at home, with the sun and amazing weather of Miami at your fingertips.
Featured Image Source: Rent. / Avalon Doral
Lesly Gregory has over 15 years of marketing experience, ranging from community management to blogging to creating marketing collateral for a variety of industries. A graduate of Boston University, Lesly holds a B.S. in Journalism. She currently lives in Atlanta with her husband, two young children, three cats and assorted fish.